Woulfe Mining Corp. (TSXV:WOF,OTCQX:WFEMF,FWB:OZ4) and its 100%-owned South Korean subsidiary, Sangdong Mining Corporation, have entered into agreements for a strategic arrangement with IMC International Metalworking Companies B.V. and certain of IMC’s affiliates.
As quoted in the press release:
The closing of the transaction is subject to customary closing conditions, including the satisfactory conclusion of due diligence by IMC, the receipt of applicable regulatory approvals and other matters set forth in full in the relevant agreements. The basis of the strategic arrangement is as follows:
IMC will immediately advance CDN$5 million to Sangdong, pursuant to a loan agreement, for purposes of project advancement pending the closing of the transaction;
- IMC has agreed to acquire a 25% interest in Sangdong for cash consideration totalling CDN$35 million;
- Woulfe and IMC have agreed to jointly establish a Korean company (“APT JV”), which will be owned 45% by Woulfe and 55% by IMC. The parties will invest up to CDN$15.75 million and CDN$19.25 million, respectively, into the APT JV to build a facility in Korea for the processing of tungsten concentrate to be purchased from Sangdong into tungsten APT. IMC has agreed to make available to Woulfe a loan for Woulfe’s portion of the APT JV investment;
- The APT JV has agreed to acquire no less than 90%, and up to 100%, of Sangdong’s tungsten concentrate production pursuant to an off-take agreement, which will be guaranteed by IMC;
- IMC has agreed to acquire no less than 90%, and up to 100%, of the APT JV’s available APT production pursuant to a separate off-take agreement.
Woulfe CEO Brian Wesson, said:
“We are excited and honoured to have concluded our negotiations for the strategic alliance of the Company with IMC. We believe that working with one of the world’s largest tungsten end users, which has operations in Korea as well as throughout the world, is extremely beneficial for Woulfe Mining Corp. and all of the Company’s stake holders who have supported us over the last two years.